The effects and risks of quantitative easing
Abstract
Quantitative easing (QE) comes in many forms, each tailored to the specific needs of the region in question. What they all have in common, though, is that they are the result of the failure of conventional policy to deliver the outcomes policymakers want. There are many risks associated with unconventional tools such as QE and a number of drawbacks. But central banks around the world have taken risks with the future in a bid to avoid adverse consequences today or tomorrow. They hope that by the time QE draws to an end, they, the markets, the financial system and the wider economy will be able to manage those risks effectively. Whether they can remains to be seen.
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Author's Biography
Paul Mortimer-Lee is responsible for the global economic coverage of the BNP Paribas team of market economists, who are located in the main financial centres. Paul is based in London and has worked for the bank since 1995. Among Paul’s recent main focuses have been the financial crisis, the eurozone, global inflation and global imbalances. Paul writes a regular article for the Nikkei newspaper and is a regular commentator on television and in other media. Prior to taking up his position with BNP Paribas, Paul worked for many years in what is now the Monetary Analysis Division of the Bank of England, where his most recent position was Division Head for Forecasting and Conjunctural Analysis. He also worked in the Bank’s Gilt Edged and Money Markets Division and on issues relating to regulation and taxation policy. Paul also worked for a time at the International Monetary Fund in Washington DC. Paul was educated at the London School of Economics, where he obtained his BSc (Economics) and MSc, specialising in monetary economics.
Citation
Mortimer-Lee, Paul (2012, September 1). The effects and risks of quantitative easing. In the Journal of Risk Management in Financial Institutions, Volume 5, Issue 4. https://doi.org/10.69554/XPBK8971.
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